AI shares rebound after a rout erased trillions in market value

U.S. tech and AI shares staged a modest rebound Friday after a global rout erased trillions in market value. The Nasdaq rose 1.1%, trimming part of Thursday’s 5.5% slide, while the S&P 500 added 0.3% and the Dow slipped 0.4%. The bounce followed concerns that Democrats’ midterm sweep could usher in tighter scrutiny of AI and data centers, pressuring chipmakers and high-growth names. Overseas markets lagged: South Korea’s Kospi fell 6% with SK Hynix down more than 10%, and major European indexes closed lower; the U.K.’s FTSE 100 lost 1.01% as traders also digested a Bank of England rate hike and signals of further tightening. A stronger-than-expected U.S. labor report—165,000 jobs added in October and unemployment edging down to 4.1%—complicated the picture for rate and growth expectations. Analysts framed the week’s moves as a necessary correction and a test of whether AI spending can translate into broad economic returns, with investors watching if the nascent rebound in tech proves durable.

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